Competition in the Korean Won Stablecoin Market Intensifies: Longer Forces Compete for Leading Position

After the new government in South Korea took office, the cryptocurrency industry welcomed new development opportunities. Various longer forces are actively laying out the Korean won stablecoin market, striving to seize the initiative in the regional and even global stablecoin competition. With the improvement of relevant laws and regulations, the second half of 2025 to the first half of 2026 could become a key period for explosive growth in the South Korean stablecoin market.

The banking alliance is actively laying out plans

The Bank of Korea adopts a cautious attitude towards stablecoins, believing that they should be issued first by strictly regulated commercial banks. Eight major commercial banks plan to establish a joint venture to issue a Korean won stablecoin, including well-known financial institutions such as Kookmin Bank and Shinhan Bank. They are considering two issuance schemes: a trust model and a deposit token model, with the joint venture expected to be established as early as the end of this year or early next year.

As the largest retail bank in South Korea, Kookmin Bank has begun applying for relevant trademark rights. Shinhan Bank has accumulated rich experience in stablecoin pilots and cross-border payments. Other participating banks also have unique advantages in their respective fields, providing multifaceted support for stablecoin projects.

Tech Giants Eager to Try

Kakao Pay, as a leading enterprise in the payment sector of South Korea, has shown a proactive approach in the layout of stablecoins. It has submitted multiple trademark applications related to stablecoins, covering areas such as virtual asset financial transactions. Kakao Pay will also leverage the ecological advantages of its parent company to achieve a deep integration of social, payment, and financial services.

The Kaia public chain is formed by the merger of Klaytn and Finschia, and plans to fully promote the issuance of the Korean won stablecoin on the mainnet. Kaia collaborates with super applications like Kakao Pay, aiming to achieve integrated circulation of "on-chain + social + payment."

Established payment service providers seek breakthroughs

Payment service provider Danal has previously explored the field of virtual asset payments and is now restarting its digital currency business. Danal has submitted multiple patent applications for POS terminals that support virtual asset payments, making technical preparations for future stablecoin payment scenarios. Its years of accumulated POS terminal network and payment clearing system provide a natural advantage for stablecoin operations.

Blockchain Startups Seize Opportunities

The blockchain startup Nexus has issued a KRWx Korean won stablecoin on the BNB Chain and has applied for related trademark registration. Nexus also plans to launch more fiat-backed stablecoins and establish a subsidiary in Hong Kong to promote the internationalization of stablecoins.

Other Potential Participants

Samsung SDS's Nexledger and LG CNS's wholesale CBDC solutions are seen as potential providers of stablecoin infrastructure. These enterprise-level solutions possess the core characteristics required for stablecoins, providing technical support for future stablecoin projects.

With the gradual opening of the stablecoin market in South Korea, various forces such as banks, tech giants, payment service providers, and blockchain startups are actively positioning themselves. Each participant is leveraging its own advantages to strive for a competitive edge in this stablecoin race. The future development of the Korean won stablecoin market is worth ongoing attention.